CNBC Explains: Bonds and Rates
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A good way to conceptualize the cost of borrowing money is to annualize interest rates, which offers an easy way to compare loans of varying maturities.
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For those who are fuzzy on the topic, Khan of the Khan Academy explains what Libor is and how it is used.
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Interest rate swaps are derivative instruments commonly used by sophisticated investors to allow cash flows on interest-earning securities or loans to be exchanged. CNBC explains.
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When you buy a U.S. Treasury Security, you’re essentially giving a loan to the government. Salman Khan of the Khan Academy demonstrates how price and yield of treasury securities works.
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Yield curves help investors understand the relationship between bonds of differing time horizons to maturity. CNBC explains.